Oil prices down as US supplies increase

Oil prices were down on Friday after declining in the outgoing week, but were on their way for the first time to report weekly fall in six weeks. Prices after witnessing a significant rebound during the last few weeks have come under pressure from the increasing US Oil supplies and increasing doubts over Russian support of cuts extension.

Brent crude futures, the international benchmark for oil prices, were at $61.23 per barrel at 0616 GMT, down 13 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $55.32 a barrel, up 18 cents. Traders said strong U.S. crude exports were lifting WTI.

The geopolitical tensions are increasing between Iran and Saudi Arabia, risks increasing with the passage of every day. In the recent months, price rally has been supported by scarcity, however, there isn’t a shortage of oil in the international markets. But there could be, if Iran and Saudi Arabia start attacking each other.

Despite the escalating tensions, Oil analysts and traders await the OPEC decision to extend cuts which is set to be communicated on November 30^th, when OPEC and other oil producing nations meet in Vienna.